Updates to pay frequency for Reduced FTE Schedule (HR105) employees

The below information is intended for reduced FTE schedule employees who were hired before July 1, 2017 and work a reduced months/week schedule (i.e. 40 hours per week, at least 9 months per year).

Pay Frequency Change Effective Date

Pay frequency changes will take effect on July 1, 2018. Starting then, reduced FTE schedule employees will be paid only during the months/weeks they work.

Leave of Absence

During months/weeks off, the employee will be placed on a University Reduced FTE Leave of Absence. Forms and instructions will be sent to employees via Penn State email from the Penn State HR Absence Management team. Employees who do not receive the forms via email by June 1, 2018 should contact the Penn State HR Absence Management team at [email protected]A sample leave of absence form is found here.

Benefits and Time-Off Accruals

During months/weeks off, the employee's benefits (if applicable) will continue at the cost of the employee's regular rate. The best way to calculate the regular rate is to refer to recent payslips in Workday.

Time-off accruals will also accrue at regular rates during months/weeks off for reduced FTE schedule employees.


Short-Term Advance

An optional, short-term advance is available for reduced FTE staff employees with weeks/months off schedules who were hired prior to July 1, 2017 and whose leave includes at least parts of July and August 2018. A completed application is required and can be found here. The respective deadlines to apply are July 16, 2018 (for July 31 pay) and August 15, 2018 (for August 31 pay). 

Vacation Buyout 

An optional, one-time buyout of vacation days is available for reduced FTE staff employees with months/weeks off schedules who were hired prior to July 1, 2017. The maximum vacation buyout is 80 hours or half the employee's accrued vacation time, whichever is less. An employee can choose to participate in the vacation buyout through the University Reduced FTE Leave of Absence form which will be sent to them via email by Penn State Human Resources. The deadline to apply is June 13, 2018 and the vacation buyout payment will be made on June 30, 2018.

Employee Assistance Program

Free financial advising services and budgeting tools are available for benefits-eligible employees. Visit members.healthadvocate.com/finance for more information.

Employee Assistance Fund

The University's employee assistance fund can provide funds due to financial hardship. Visit policy.psu.edu/policies/hr100 to understand the parameters of the application process. 

Additional Communications

  • Video - A brief overview of the pay frequency changes and resources available.
  • Resources Handout - A one-page resource to highlight important information. 


Contact HR Services at 814-865-1473 or submit an inquiry via WorkLion with any question related to reduced FTE schedules and the pay frequency changes.